Factors That Impact Your Home Insurance Rates
Obviously, your driving record impacts your car insurance rates. Your age and health will affect your life insurance rates. What factors impact your home insurance costs? Here are some major factors:
Age and Condition
A major factor in home insurance rates is the age and condition of the house. They may not be built to today’s standards and have older wiring and roofs. All things considered, a new home will be less expensive to insure than an older one.
Location
Where a home is located affects rates, including geographical regions down to the neighborhood. How close your home is to a fire department or even hydrants could affect rates.
Replacement Costs
It should be apparent that the more valuable your home is, the more it will cost to replace it. This can make it more costly to insure.
The Amount of Your Coverage
Your home insurance policy has limits ranging from contents to outbuildings to liability and overall coverage that will affect your rates. You should want these limits to be sufficient without being excessive.
Your Deductible
The deductible is the portion of a claim the insured pays before policy benefits kick in. The higher these deductibles, the lower your premium will generally be.
Safety Features
Various safety and security features in a home can earn discounts. This may include fire and burglar alarms, deadbolt locks, cameras, and more.
Credit Rating
Insurance companies have found that consumers with higher credit ratings tend to be more responsible with their insurance. This may lead to better rates.
If you haven’t had a home insurance review in years or longer than you can remember, connect with one of our independent agents. As independent agents, we are qualified to review the policies of any company and can even search for rates that may be more competitive. Contact us today for a no-obligation, no-cost home insurance review.
